From Japan Post Holdings to Dream International to Alibaba here's what you need to know this week.

The Smartkarma Weekly Starter is a newsletter published every Sunday and pulls together the top research notes published over the last 7-days from across our platform.

In this week's edition of the Smartkarma Weekly Starter, we get a quick rundown on the top engaged insights for the week.

Start your week off on the right foot with:

Japan Post Holdings (6178) - Bigger Better Bullish Buyback With Caveats

JPH, JPB, and JPI announced earnings on 15 May. JPH also announced a larger buyback with more impact than last year. That should be good, but the ratio is limited in extension, and flows matter.

• Today, Japan Post Holdings (6178 JP) announced results (and Mar25 guidance) as did its subsidiaries Japan Post Insurance (7181 JP) and Japan Post Bank (7182 JP) .?
• There are a number of interesting things in all the announcements/presentations but the most interesting one for JPH holders is a big buyback. Another one.
• The company has announced a ￥350bn buyback. It is larger than last year's (￥300bn) buyback and has another important difference.

By Travis Lundy in Event-Driven

Alibaba (9988 HK): 4Q24, Main Business Began to Grow

Customer management as the largest business began to increase compared to the past two stagnant quarters. We believe margin will continue to decline as the company turned its focus to growth.

• Customer management as the largest business began to increase compared to the past two stagnant quarters.
• We believe margin will continue to decline as the company turned its focus to growth.
• We conclude an upside of 41% for March 2025 based on peer companies’ P/S ratios.

By Ming Lu in Equity Bottom-Up

Alibaba: Our Take on 4QFY24

Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's expansion cuts into margins.

• Alibaba Group Holding (BABA US) 's FQ4 announcement portrays a resilient comeback to growth, suggesting the past four years' challenges barely impacted its dominance in Chinese e-commerce.
• However, a closer look beyond the surface of Alibaba Group Holding (9988 HK) 's FQ4 results announcement reveals that little has actually changed in recent months.
• Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's expansion cuts into margins.

By Oshadhi Kumarasiri in Equity Bottom-Up

Cafe De Coral (341 HK): Immediate Upside

Cafe De Coral struggles to rebound post-COVID, while Haidilao International Holding sees share price rally alongside market indices. Profit alert shows a significant YoY increase in net profit.

• Cafe De Coral Holdings (341 HK) share price never really rebounded post COVID despite its operating numbers gradually improving.?
• Haidilao International Holding (6862 HK) share price has rallied along with the Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) but not Cafe de Coral.
• Recent profit alert that, excluding pandemic subsidies, the group's net profit will rise 470% YoY.?

By Henry Soediarko in Equity Bottom-Up

Great Eastern Holdings (GE SP): OCBC’s Offer Needs a Bump to Achieve Privatisation Ambitions

While the offer is reasonable, it is not a knockout bid which would comfortably allow OCBC to privatise Great Eastern. Shares are trading slightly above terms as a bump is highly likely.

• OCBC (OCBC SP) has announced a voluntary unconditional general offer for Great Eastern Holdings (GE SP) at S$25.60 per share, a 36.90% premium to the undisturbed price.
• OCBC aims to privatise Great Eastern by delisting resolutions or exercising compulsory acquisition rights. The offer has not been declared final.
• While the offer is reasonable, it is not a knockout bid which would comfortably allow OCBC to privatise through either option. A bump is highly likely.???

By Arun George in Event-Driven

Dream International (1126 HK)? Management Concall: 4x PE,11.4% Div Yield,40% of Mkt Cap in Cash

We summarize our gleanings from a concall with the mgmt of Dream International (1126 HK) recently. It trades at mouth watering 3.9x FY23 PE and a 11.4% dividend yield with 40% of the market cap

• We summarize our gleanings from the conference call with Dream International (1126 HK) to better understand growth opportunities and future expansion plans.
• The company is expanding in Indonesia to increase its capacity by 30 million USD ( over 830 million USD). (capacity utilization for FY23:83%).
• Trading at 4x FY24e PE, with an 11.4% dividend yield and a 15-year average ROE of 20%, this is a stock worth exploring.?

By Sameer Taneja in Equity Bottom-Up

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety - May 2024

We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.? We filter our top picks amongst those names.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Perfect Medical Health (1830 HK) , Water Oasis (1161 HK) , Taste Gourmet (8371 HK) , Uchi Technologies (UCHI MK) , and Ginebra San Miguel (GSMI PM) .
• After a massive recent correction for HK stocks, we are more constructive on the names, and yields there look very attractive.

By Sameer Taneja in Equity Bottom-Up

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